Leeds office market has a strong quarter despite post-Brexit uncertainty

Published on: 7th November 2016

The Leeds office market tabled total take-up of 191,265 sq ft in Q3 which was a positive outcome given the uncertainty created in Q’s 2 & 3 by the referendum and decision to Brexit.

Q3 Leeds City Centre take-up was 125,321 sq ft an increase of 52,218 sq ft (71%) on the preceding quarter as lettings to The Department of Health of 23,762 sq ft at Whitehall II and 12,969 sq ft to Ward Hadaway at the newly completed 5 Wellington Place helped swell the total amount of space transacted.

 The Out of Town market saw the largest deal of the quarter as Lowell signed for 45,647 sq ft of expansion space at Leeds Valley Park although this letting masked what was otherwise a challenging period of activity as Out of Town transactions totalled just 65,944 sq ft in Q3. (Q2 2016: 76,026 sq ft).

Click here to download Q3 2016 Leeds office market update

How Central Square is redefining the Leeds office market

Richard Dunn, partner in our office agency team talks about working as a leasing agent on Leeds City Centre’s Central Square. “As this landmark £100m development nears practical completion, it is clear that Central Square is set to redefine what Grade A office accommodation looks like in Leeds City Centre.

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Richard Dunn, partner in our office agency team talks about working as a leasing agent on Leeds City Centre’s Central Square.

“As this landmark £100m development nears practical completion, it is clear that Central Square is set to redefine what Grade A office accommodation looks like in Leeds City Centre.

[fulltext] =>

In response to demand for quality, sustainable offices with large, flexible footplates, Central Square is delivering class-leading sustainability credentials with the largest floorplates in the city (25,000 sq ft²).

Along with eleven floors of office space, occupiers can enjoy an impressive ninth floor sky garden that has panoramic views of the city, and is a great spot for entertaining. Inside the ground floor atrium, a quality mix of bars, restaurants and shops, as well as a winter garden, will be open to the general public.

There’s still chance for occupiers to take space with approximately 125,000 sq ft of Grade A office space available. We’ve had a huge amount of interest and two pre-let deals including PwC, who have taken 50,000 sq ft on the 7th and 8th floors, and RSM who have taken 25,000 sq ft on the 5th floor. A further 17,000 sq ft of office space is also in solicitors’ hands.

It’s fantastic to work on such a cutting edge development as this level of quality is very rare outside of the capital – it’s a London office building located in the heart of Leeds.”

Central Square is an 11-storey, 220,000 sq ft building located on Wellington Street, and a two minute walk from Leeds train station. Earlier this year, we were appointed as joint leasing agent on Central Square, alongside JLL.

Click here to find out more about the office space available at Central Square.

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Leeds out of town office take-up exceeds city centre take-up for second successive quarter

Download Leeds Office Market Update Q2 2016. In the second quarter of 2016 the out of town market outperformed the city centre for the second successive quarter.

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Download Leeds Office Market Update Q2 2016.

In the second quarter of 2016 the out of town market outperformed the city centre for the second successive quarter.

[fulltext] =>

According to the Leeds Office Agents' Forum (LOAF), city centre take-up was down 40% on Q1 with take-up of 73,103 sq ft across 25 deals, making it one of the quietest quarters since Q4 2012. The largest deal of the quarter saw Plexus Law take 14,743 sq ft at Joseph’s Well.

There is continued optimism for the out of town market, with take-up of 76,026 sq ft in Q2. Two transactions were in excess of 10,000 sq ft, namely NHS Property Services who took 10,826 sq ft at Wira Business Park in Horsforth, and Slater & Gordon, who took 10,860 sq ft in City West.

The Leeds Office Agents' Forum was established in 2010 by the leading surveying firms based in Leeds to collate and distribute definitive market data. Its members are Sanderson Weatherall, BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Savills and WSB.

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Largest out-of-town office deal in over two years boosts Leeds' first quarter office take-up

Download Market Update Q1 2016. Office occupier take-up in Leeds continued to show strong demand during the first quarter of 2016 with the out-of-town market outperforming the city centre for the first time since Q2 2012.

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Download Market Update Q1 2016.

Office occupier take-up in Leeds continued to show strong demand during the first quarter of 2016 with the out-of-town market outperforming the city centre for the first time since Q2 2012.

[fulltext] =>

According to the Leeds Office Agents' Forum (LOAF), a total of 141,174 sq ft of office space was transacted in the out-of-town market between January and March this year – a 30% increase on the previous quarter and 137% increase on the same period in 2015. This compares with a total of 121,908 sq ft of city centre offices taken up in the first three months of 2016, a 39% increase compared to quarter one 2015.

Activity was buoyed by the first pre-let at Kirkstall Forge which saw Zenith Intelligent Vehicle Solutions take 45,000 sq ft in what was the largest out-of-town office deal for over two years. Of the 25 out-of town-deals to complete in the first quarter of 2016, five were over 10,000 sq ft. 

Richard Dunn, Partner in our agency department and LOAF spokesperson, said: "A healthy combination of volume and size of deals over 10,000 sq ft means out-of-town market conditions are arguably at their most buoyant for four years.

"We saw the first significant out of town pre-let for several years at CEG's Kirkstall Forge which has kick started the development of this 56-acre site and most importantly, the first office building on the scheme. This also helps to underpin Scarborough's confidence in commencing the only fully speculative out-of-town office building at Paradigm, 3175 Thorpe Park , which is likely to set a new benchmark for out-of-town rents when completed towards the end of this year."

In the city centre, 22 occupier office deals transacted over the first three months with an average size of 5,500 sq ft. Just three deals over 10,000 sq ft completed: RSM securing 25,539 sq ft at Central Square, the letting to Hestview Ltd of 39,605 sq ft at No 6 Wellington Place and Dentsu Aegis Network agreeing a pre-let on 13,800 sq ft at 6 East Parade.

Richard added: "With five city centre schemes - 5 Wellington Place, Central Square, 6 Queen Street, 6 East Parade and 3 Sovereign Square - all scheduled to reach practical completion in Q2/Q3 this year, Leeds offers a UK leading choice of new offices backed by competitive rents and access to a diverse and skilled workforce. These all make our city very attractive to both local businesses as well as companies looking to north shore from the expensive and overcrowded London and south-east markets."

The Leeds Office Agents' Forum was established in 2010 by the leading surveying firms based in Leeds to collate and distribute definitive market data. Its members are Sanderson Weatherall, BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Savills and WSB.

Contact Us

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Leeds city centre second highest office take up figures on record

Download Market Update Q4 2015. The last quarter of 2015 saw one of the highest volumes of deals on record for Leeds city centre. Between October – December 2015 city centre take up figures reached 267,187 sq ft across 53 transactions. 

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Download Market Update Q4 2015.

The last quarter of 2015 saw one of the highest volumes of deals on record for Leeds city centre. Between October – December 2015 city centre take up figures reached 267,187 sq ft across 53 transactions. 

[fulltext] =>

This left year end take up figures at 680,105 sq ft – the second highest total since records began, and up 25% on 2014. The largest transactions of the quarter were the two pre-let deals to Sky at New Dock totalling 97,022 sq ft, also making it the largest transaction of 2015.

In the out of town market year end take up figures were up 13.23% on last year at 268,041.

Richard Dunn, partner in our Leeds office, commented on the upcoming year: “The future of the Leeds office market looks very promising, with major city centre schemes opening this year and the majority with significant pre-lets. We have also seen a resurgence in the out of town market, which will hopefully continue with the arrival of quality stock in the planned developments at Thorpe Park, WROP and Kirkstall Forge.”

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Upswing in Leeds’ out-of-town office market activity in third quarter of 2015

Click here to download Q3 2015 Leeds Market Update The Leeds Office Agents’ Forum (LOAF) has released its quarterly update on the state of the city’s office market with figures showing that occupier take-up reached 112,103 sq ft in Leeds city centre in the third quarter of 2015 (Q3) over 36 deals. Q3 activity in the out-of-town market reached 72,314 sq ft over 21 deals compared with just 35,305 sq ft over the same period last year.

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Click here to download Q3 2015 Leeds Market Update

The Leeds Office Agents’ Forum (LOAF) has released its quarterly update on the state of the city’s office market with figures showing that occupier take-up reached 112,103 sq ft in Leeds city centre in the third quarter of 2015 (Q3) over 36 deals. Q3 activity in the out-of-town market reached 72,314 sq ft over 21 deals compared with just 35,305 sq ft over the same period last year.

[fulltext] =>

With less than three months until the end of 2015, year to date city centre take-up stands at 412,918 sq ft while 169,551 sq ft has been transacted in the out-of-town market. The Forum anticipates that the final full year city centre total will be in the region of 575,000 – 600,000 sq ft approximately 25% above the five year running average.

The largest city centre office transactions to complete were the acquisition of 17-19 York Place by the Church of England and the letting of 8,718 sq ft to Secretary of State for Health at 1 Trevelyan Square on Boar Lane.

Richard Dunn, Partner at SW comments: “What is encouraging about this quarter is the overall level of activity - in all we saw 57 deals completed. In comparison with the rest of 2015, we’ve seen no larger sized city centre ‘trophy’ deals or pre-lets – just a healthy number of ‘bread-and-butter’ transactions across the 5,000 – 10,000 sq ft size bracket.”

In the out-of-town office market the letting to Reed Elsevier of 12,306 sq ft at City West (Building 3) was the largest sized deal to complete in the third quarter.

Richard added: “We have seen the highest level of out-of-town take-up in quarter three. This was a very much a case of quality over quantity as four of these transactions were for over 10,000 sq ft which bodes well for the state of the market longer term.

“The ongoing supply issue for good quality space has been well documented. This scarcity means headline office rents continue to creep upwards and the new builds and refurbishments coming through are pushing city centre quoting rents towards £30 per sq ft.”

The Leeds Office Agents' Forum was established by the leading surveying firms based in Leeds to collate and distribute definitive market data. Its members are BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, Bilfinger GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.

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Leeds office take up boosted in Q2 by pre-lets at 3 major new developments

A healthy quarter saw city centre take up at 213,126 sq ft across 40 deals, leaving H1 2015 standing at a promising 300,815 sq ft, compared to 243,987 sq ft at the half way point last year. Click here to download Leeds office market update Q2 2015

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A healthy quarter saw city centre take up at 213,126 sq ft across 40 deals, leaving H1 2015 standing at a promising 300,815 sq ft, compared to 243,987 sq ft at the half way point last year.

Click here to download Leeds office market update Q2 2015

[fulltext] =>

The largest transaction of the quarter was the prelet of 51,531 sq ft to Addleshaw Goddard at 3 Sovereign Square. Other notable transactions were prelets of 49,650 sq ft to PwC at Central Square, and 19,784 sq ft to Equifax at No 6 Wellington Place. These three buildings are due to be completed over the next 12 months, and will significantly contribute to the attraction of major occupiers to Leeds city centre.

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